Translation

the language of the English press and the manifestations of public opinion all made people believe that these financial operations hid political goals.

On the other hand, it is unquestionable that the Viceroy began to negotiate the sale of the shares with a French bank, behind which one wishes the government were there, and if he did not close, it was because he thought they wanted to impose costly conditions. It is also true that the first offers for 15% of income of the canal came from Paris, and that Mr. Pastré broke off the negotiations because he thought to consolidate those guarantees to others for a more important operation that the Viceroy was forced to negotiate. This operation was foreseen by everyone not to be done except regarding the railways. A competition was born that, without the existing political worries regarding the East, would be all, financially speaking, to the benefit of Egypt, and now instead, with the finance getting intermixed with politics, could create some embarrassment for him. Mr. Pastré has already made his propositions, offering 16 million pounds sterling to be issued for 60 months, with interest, commission, etc., at 10%. Mr. Elliot still has not spoken, but continues with minute and serious studies of the conditions, administration, movement, and income of the railways. Yesterday I had the opportunity to see the Khedive. He entered the conversation declaring in the most positive way that the English government has not intervened in this operation, nor intervened in any other way, and that wrongly it is thought it could have character and political influence; that he does not have a preference for anyone and will give it to whomever makes him the best financial conditions. May it please you, etc.

Signed: De Martino

V.

The Royal Agent and Consul General in Egypt to the Minister of Foreign Affairs (Il R. Agente e Console Generale in Egitto al Ministro degli Affari Esteri)

Mr. Minister,

His Highness has spoken to me again about the considerations that are made by the French agent in support of Mr. Pastré. Always avoiding to discuss the question, I suggested that he not involve himself with personal business. Putting aside the political question, if it really exists, today the financial position is as follows: the true conditions offered by the English are ignored, and I believe that they have still not actually formulated them, and it was said to me only by the Viceroy, and also Mr. Outrey repeated it, that they will demand 7% of the profit. The French group, based on what Mr. Outrey says, would decrease to ask for 11%. The Viceroy, continuing to insist that the operation is purely financial and that the English offers will be the most advantageous, but, to show that he does not